Ange, Bill, and Cayne are partners sharing profit on a 4:3:3 ratio. On January 1, 2021, Danny was admitted into the partnership with 10% share in profits. The old partners continue to participate in profits in their original ratios. For the year 2021, the partnership showed a profit of P20,000 however, it was discovered that the following items were omitted in the firm’s book: Account 2020 2021 Accrued expense P3,000 Accrued income 900 Prepaid expenses P1,500 Unearned income 1,300
Ange, Bill, and Cayne are partners sharing profit on a 4:3:3 ratio. On January 1, 2021, Danny was admitted into the partnership with 10% share in profits. The old partners continue to participate in profits in their original ratios. For the year 2021, the partnership showed a profit of P20,000 however, it was discovered that the following items were omitted in the firm’s book: Account 2020 2021 Accrued expense P3,000 Accrued income 900 Prepaid expenses P1,500 Unearned income 1,300
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Question
Ange, Bill, and Cayne are partners sharing profit on a 4:3:3 ratio. On January 1, 2021, Danny was admitted into the partnership with 10% share in profits. The old partners continue to participate in profits in their original ratios.
For the year 2021, the partnership showed a profit of P20,000 however, it was discovered that the following items were omitted in the firm’s book:
|
Account |
2020 |
2021 |
|
Accrued expense |
P3,000 |
|
|
Accrued income |
900 |
|
|
Prepaid expenses |
P1,500 |
|
|
Unearned income |
1,300 |
The share of partner Bill in the 2021 net profit is?
Group of answer choices
4,779
5,310
4,833
4,887
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